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Kyrgyzstan launches wheat flour investigation

12 September 20132 min reading
Kyrgyzstan recently notified the World Trade Organization (W.T.O.) that it initiated a safeguard investigation into the importation of wheat flour. Kyrgyzstan recently notified the World Trade Organization (W.T.O.) that on 2 July 2013 it initiated a safeguard investigation into the importation of wheat flour. The aim of the safeguard investigation is to determine whether increased the wheat flour import is causing, or is threatening to cause, serious injury to the domestic milling industry. In case of a situation like that, Kyrgyzstan can limit the wheat flour import temporarily or increase the duties related with import. The analyses about the wheat flour import between 2010 and 2012 are effective on the reason why Kyrgyzstan has initiated a safeguard investigation. The preliminary analysis of import of wheat flour to the territory of the Kyrgyz Republic for the period from 2010 to 2012 determined the following: - Comparing to 2010 the volume of import of flour in 2011 was increased for more than 5.3 times and 4.35 times in 2012; - Main financial and economic indicators of domestic producers of wheat flour for the period 2010-2012 are characterized by the negative dynamics; - Workload of production capacities of domestic enterprises on flour production within the given period was decreased from 42.3% to 291%; - Volume of flour production in 2010 compared to 2009 was decreased by 6.7% in 2011 as compared to 2010 by 8.2%; - Specific weight of import in total consumption value of flour in Kyrgyzstan was increased from 5% in 2010 to 24.85% in 2012. In 1st quarter of 2013 this indicator was already 33%.
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